Japan Display cancels funding in Taiwan startup PanelSemi

'Geopolitical risks' cited; collaboration on chip packaging and sensors continues

20250602N Japan Display REUTERS

Japan Display has posted 11 straight years of losses due to its struggling LCD business. © Reuters

FUMIE YAKU

TOKYO -- Panel maker Japan Display will abandon plans to invest in Taiwanese startup PanelSemi, the Japanese manufacturer said Monday, citing rising "geopolitical risks."

The two companies signed a memorandum of understanding in February that entailed a capital and business alliance, but they have agreed to terminate the memorandum due to the "recent intensification of geopolitical risks surrounding the semiconductor industry," Japan Display said in a statement.

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